Sysco Corporation reported its financial results for the second quarter of fiscal 2025, revealing a sales increase of 4.5% to $20.2 billion compared to the same period last year. The company's gross profit rose by 3.9% to $3.65 billion, while operating income increased by 1.7% to $712 million. However, net earnings decreased by 2.2% to $406 million, attributed to higher restructuring and acquisition-related costs. Basic earnings per share rose slightly to $0.83, while diluted earnings per share remained unchanged at $0.82.
In the first 26 weeks of fiscal 2025, Sysco's sales also grew by 4.4% to $40.6 billion, with operating income increasing by 1.0% to $1.5 billion. Net earnings for this period decreased by 2.5% to $896 million, with basic and diluted earnings per share remaining stable at $1.82. The company noted that adjusted net earnings, excluding certain items, increased by 0.6% to $997 million.
Strategically, Sysco completed the acquisition of Campbells Prime Meat, a specialty meat business in Scotland, which is expected to enhance its product offerings. The company also divested its interest in a joint venture in Mexico, aiming to improve its return on invested capital. Sysco's operational metrics showed a 1.4% increase in case volume for U.S. Foodservice Operations, driven by national volume growth and the impact of acquisitions.
The company reported a total employee headcount of approximately 49,000 as of December 28, 2024, reflecting its ongoing commitment to workforce stability amid market fluctuations. Sysco's cash and cash equivalents stood at $793 million, with a total debt of $12.6 billion. The company generated $498 million in cash flows from operations during the first half of the fiscal year, a decrease from $856 million in the prior year, primarily due to unfavorable working capital comparisons.
Looking ahead, Sysco anticipates continued sales and earnings growth, supported by its strategic initiatives and market position. The company remains focused on enhancing its supply chain capabilities and expanding its customer base, despite challenges posed by inflation and market conditions.
About SYSCO CORP
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